Alphabet Inc (NASDAQ:GOOGL) Q1 2019 Earnings Conference Call Transcript

Apr 29, 2019 • 04:30 pm ET

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Alphabet Inc (NASDAQ:GOOGL) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Alphabet First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions)

I'd now like to turn the conference over to Ellen West, Head of Investor Relations. Please go ahead.

Executive
Ellen West

Thank you. Good afternoon, everyone, and welcome to Alphabet's first quarter 2019 earnings conference call. With us today are Ruth Porat and Sundar Pichai. Now, I'll quickly cover the Safe Harbor. Some of the statements that we make today regarding our business performance and operations and our expected level of capital expenditures may be considered forward-looking and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. For more information, please refer to the risk factors discussed in our most recent Form 10-K filed with the SEC. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website located at abc.xyz/investor.

And now, I'll turn the call over to Ruth.

Executive
Ruth Porat

Thank you, Ellen. In the first quarter, total revenues of $36.3 billion were up 17% year-on-year and up 19% in constant currency, following a strong 2018. Once again, our results were driven by ongoing strength in mobile search along with important contributions from YouTube, followed by Cloud.

For today's call, I will begin with a review of results for the quarter on a consolidated basis for Alphabet, focusing on year-over-year changes. I will then review results for Google, followed by Other Bets and will conclude with our outlook. Sundar will then discuss business and product highlights, after which, we will take your questions.

Let me start with a summary of Alphabet's consolidated financial performance for the quarter. Our total revenues of $36.3 billion reflect a negative currency impact year-over-year of $1.2 billion or $1 billion after the impact of our hedging program. With respect to Alphabet revenues by geography, US revenues were $16.5 billion, up 17% year-over-year; EMEA revenues were $11.8 billion, up 13% year-over-year and up 16% in constant currency, reflecting weakening of the euro and the British pound. APAC revenues were $6.1 billion, up 27% versus last year and up 31% in constant currency, reflecting primarily the weakness of the Australian dollar and the Indian rupee. Other Americas revenues were $1.9 billion, up 10% year-over-year and up 21% in constant currency, reflecting primarily the weakening of the Brazilian real and Argentine peso.

Turning to profitability. In our earnings press release, we provided table to highlight the impact of the European Commission fine on operating income, net income and EPS results in the first quarter. I will comment on results both with and without the impact of the fine, as I review the results. On a consolidated basis, total cost of revenues, including TAC, which